Self-reporting such a failure can be used as part of thecompany or partnershipâs reasonable procedures defence if it is charged with anoffence. It can also be taken into account by prosecutors when making adecision about whether to prosecute and can be reflected in any penalties thatare imposed

Knowing the legal difference between a consultant and an employee is important for a company that needs to hire someone in
Nicaragua or for a person interested in rendering services for a
company or another person, due to the fact that the nature of
the contractual relationship will determine many factors that both
parties must be aware of before executing the contracting modality that will govern the relationship between them - the nature
of the contractual relationship impacts on the employment benefits, tax implications and liabilities that the parties must comply
with according to the law. Â labor_law_in_nicaragua

In recent years, the country Ěs the government has been committed to
improving Taxation in Nicaragua and attempting to follow the legislative
model used by some of the other countries in the region. Starting
January 1st, 2013, a new tax law (Law No. 822, Tax Concertation
Law) came into force in and completely changed the taxation system
in Nicaragua. Two years later a new law was issued by the National
Assembly containing more than 80 amendments, additions and
repeals (Law No 891) which came into force December 18th, 2014.